Courtesy of Mish.
OPEC is pointing the finger at speculators as well as Non-OPEC countries, but especially US shale producers for the crude price crash.
Let’s explore that idea in a series of charts. But first let’s take a look at the allegation.
The Wall Street Journal reports Gulf Oil Exporters Blame Non-OPEC Producers for Glut.
Gulf oil officials on Sunday defended OPEC’s decision last month to keep its production ceiling intact, blaming producers outside of the group for the glut of oil on the market that has depressed prices.
Speaking at an energy conference in Abu Dhabi, Saudi Oil Minister Ali al-Naimi blamed a lack of coordination from producers outside the Organization of the Petroleum Exporting Countries—along with speculators and misleading information—for the slump.
OPEC officials have singled out American shale producers as a particular problem. U.S. oil production has soared as a result of the shale boom, reducing OPEC exports to the U.S.
Non-OPEC producers “will realize that it is in their interests to cooperate to ensure high prices for everyone,” Mr. Naimi said.
OPEC December Monthly Oil Market Report
Are US shale frackers really to blame for the price crash?
Let’s take a look using OPEC’s own data. Please consider charts and other analysis from the OPEC December Monthly Oil Market Report.
OPEC vs. Non-OPEC Supply
Non-OPEC oil supply is estimated to grow by 1.72 mb/d in 2014 to average 55.95 mb/d.
In November, OPEC crude oil production averaged 30.05 mb/d, according to secondary sources, a decrease of 0.39 mb/d over one month earlier.
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